News Brief
Domestic Companies Commit More Than Rs 200 Crore Towards Expanding IT Hardware Manufacturing Under PLI Scheme: Report
Workers at a hardware factory - representative image.
Domestic electronic producers like Infopower Technologies, Dixon Technologies, Bhagwati Products, and VVDN have already committed over Rs 200 crore to augment the IT hardware manufacturing capacity as per the central government's production-linked incentive (PLI) scheme for the sector.
For example, Dixon is on course to establish its 13th factory in Noida, Uttar Pradesh and will start production with tablets and laptops in the coming four months.
Similarly, the likes of Infopower, Bhagwati and VVDN are already ramping up their manufacturing facilities in all major product lines, such as all-in-one servers, personal computers, tablets and laptops.
Another homegrown firm, the Bengaluru-based Smile Technologies, will be initiating its new plant at Hindupur in Andhra Pradesh by the end of the ongoing fiscal year.
"We have set aside an investment of Rs 25 crore over four years, of which Rs 10 crore will be spent in the first year in our new facility which will have a capacity of producing 500,000 laptops and 2.5 million tablets in a year," Dixon's executive chairman Sunil Vachani was quoted in a report by The Economic Times.
VVDN has set aside Rs 100 crore towards building up its current facility at Manesar in Haryana. In contrast, Bhagwati Products, the makers of Micromax phones, will invest Rs 50 crore under the scheme.
It is also currently negotiating with certain major overseas brands for tablets and laptops, and an announcement regarding the same will be made within a month.
Meanwhile, the Indian companies remain confident of fulfilling their given targets for the opening year even though there was an over three-month postponement in rolling out the final approval letters under the PLI scheme.
However, the industry has reportedly requested the government to enhance the scheme's financial outlay and subsequently remodel the low incentive structure. They, however, remain optimistic of an increase in allocation upon significant progress being made in the final output.
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